This episode examines absolute momentum, a trend-following investment strategy where an asset's past returns predict its future performance. The authors explore the optimal look-back period for this strategy, demonstrating its effectiveness across various asset classes (stocks, bonds, real assets) and portfolio types (60/40, risk parity). They highlight absolute momentum's ability to improve risk-adjusted returns and reduce drawdowns, particularly in comparison to relative momentum strategies. The research uses extensive historical data to support these findings and suggests absolute momentum as a simple, yet powerful, tool for enhancing portfolio performance and managing risk. Finally, the authors discuss the potential for leveraging this strategy further.